1 Marketing Plans Strategic Marketing Plans – based on careful examination of a firm’s core business strategy and primary marketing objectives Tactical Marketing Plans – focus on implementing the broad strategies that are established in the strategic plan

2 Marketing Plans Advantages –Helps firms cope with change –Focuses on objectives –Aids management in decision-making –Forces managers to examine operations –Provides criteria for evaluation Disadvantages –Very time-consuming –Needs support of top management –May not be objective or accurate –Short timeframe may affect quality –Lack of personnel with expertise

3 Why Some Plans Fail Strategic planning not integrated into day-to- day activities of the firm Those responsible for planning do not understand the planning process There is a lack of input from non-marketing managers Financial projections treated as marketing plans Lack of information on environment Based too heavily on short-term results No procedures to monitor and control

4 Conduct a Situation Analysis Define the Firm's Goals and Objectives Formulate Marketing Strategies and Action Plans Implement Action Plans and Monitor Performance Figure 5.1. The Marketing Planning Process

5 Marketing Planning Process Conduct a situation analysis Define the firm’s goals and objectives Formulate marketing strategies and action plans Implement action plans and monitor performance

Framework for Marketing Plans Executive Summary Situation Analysis Marketing Strategy Financials, Budgets and Forecasts Controls 6

Situation Analysis I Market Summary –Target markets –Market analysis –Market demographics –Market needs –Market trends –Market growth 7

Situation Analysis II SWOT’s –Strengths –Weaknesses –Opportunities –Threats 8

Marketing Strategy Mission Objectives Target marketing Positioning Marketing mix Marketing research 9

Financials, Budgets and Forecasts Sales forecast Expense forecast 10

Controls Implementation of milestones and metrics Contingency planning 11

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13 Characteristics of Good Objectives Specific and easy to understand Identify expected results Within the power of the organization to achieve Acceptable to the individuals within the organization

14 Types of Objectives Financial – profit, rate of return, cash flow Sales – revenue, volume, market share Competitive – position, survival, parity Customer – awareness, image, satisfaction

15 Market Penetration Product Development Market Development Product Diversification Product Development Strategy Options Existing ProductNew Product Existing Market New Market

16 Methods to Evaluate Performance Sales control data Cost control data Profit control data Consumer feedback

17 Sales Forecasting Qualitative –Expert opinion –Delphi technique –Sales force forecast –Survey of buying intentions Quantitative –Time series analysis Trend extrapolation Moving average Exponential smoothing –Causal methods Regression analysis Econometrics

18 Selecting a Forecasting Technique The time horizon The availability of data The pattern of the data The desired level of accuracy Cost of collecting and analyzing data Ease of application © 2010 John Wiley & Sons, Inc.